M+ Morning Market Buzz - 7 Nov 24

Dow Jones: 43,729.93 pts (+1508.05pts, +3.57%)
⬆️ Resistance:  44700
⬇️ Support:  40900

FBM KLCI: 1,634.17 pts (+13.47pts, +0.83%)
⬆️ Resistance:  1670
⬇️ Support:  1560

HSI Index: 20,538.38 pts (-468.59pts, -2.23%)
⬆️ Resistance:  21500
⬇️ Support:  20000

Crude Palm Oil: RM4,917 (+RM7, +0.14%)
⬆️ Resistance:  5030
⬇️ Support:  4660

Brent Oil: $75.53 (-$0.39, -0.52%)
⬆️ Resistance:  77.80
⬇️ Support:  70.80

Gold: $2,659.06 (-$84.93, -3.10%)
⬆️ Resistance:  2850
⬇️ Support:  2600

M+ Market update – 7 Nov 24
 Market Kicks Off Strong with Trump 2.0

The FBMKLCI rebounded as the market responded positively to Donald Trump’s win as POTUS. Similarly, Wall Street gained momentum as traders digested Trump’s return to the White House and the Republicans’ victory in the US Senate. We believe that most US corporations will be early beneficiaries, given the anticipation of a lower tax environment under Trump’s administration. Also, the market will closely monitor tonight’s FOMC meeting, which could trigger a spike in the VIX index. In the commodities market, Brent crude oil traded flat around USD 75 per barrel. Meanwhile, gold prices saw a significant pullback, trading at USD 2,664, as investors reduced exposure to safe-haven assets amid a surge in the dollar index. At the same time, CPO prices continued their rally, closing above the RM 4,900 level.

Sector Focus: Given Wall Street’s strong overnight performance, we believe the "Trump Trade" could spill over to the local bourse, particularly in the Technology sector in the near term. While we anticipate that the O&G sector may trade flat, given current crude oil prices, we maintain a positive view on glove stocks, as the ringgit is likely to depreciate in the near term following Trump’s victory. Additionally, we favour the Construction, Building Materials, Property, and Utilities sectors as we enter the corporate earnings season.

Stocks to watch: 

Construction: *SCGBHD*, SUNCON, WCT 
Technology: *EG*, *RAMSSOL*, VSTECS
Property: ECOWLD, *SUNWAY*
Shipping: *HARBOUR*
Telco: REDTONE

Source: M+
 

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